RSA Insurance Group PLC (LON:RSA) said it took a £50mln hit resulting from hurricanes in the US and the Caribbean in the third quarter and expects costs to rise, sending its shares lower.
The company said the impact of the natural disasters, including Hurricanes Harvey, Irma and Maria, remain unclear.
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“Claims notifications for these events are still developing, and we expect this (£50mln) provision to increase somewhat,” RSA said in its third quarter trading statement.
As a result, group underwriting results are expected to be “slightly weaker than the previous year”, the company added.
Chief executive, Stephen Hester, said profits were ahead of last year but by less than targeted. He did not provide profit figures in the third quarter statement.
"We are continuing to drive business enhancements across the Group, whilst taking further underwriting action in some portfolios to improve performance for 2018,” he said.
Overall premium income rose 8% to £5.o7bn, driven by growth in the Scandinavian and Canadian businesses.
Tangible equity increased 0.7% to £2.81bn at September 30 from £2.79bn at the end of the June quarter.
Shares fell 2.21% to 619p in morning trading.